JUBILEE LIFE INSURANCE COMPANY LTD INVESTORS' OUTLOOK FOR THE MONTH OF FEBRUARY 2015

Transcription

1 JUBILEE LIFE INSURANCE COMPANY LTD INVESTORS' OUTLOOK FOR THE MONTH OF FEBRUARY /28/2015

2 Table of Contents Market Review Managed Fund... 3 Capital Growth Fund... 4 Meesaq Fund... 5 Yaqeen Growth Fund... 6

3 31-Dec-14 2-Jan-15 4-Jan-15 6-Jan-15 8-Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan-15 1-Feb-15 3-Feb-15 5-Feb-15 7-Feb-15 9-Feb Feb Feb Feb Feb Feb Feb Feb Feb Feb-15 Market Review February 2015 Equity Market The KSE-100 Index closed February at 33,632 down 2.36% MoM, despite some exceptional results announcements during the month. Average volume also reduced to 151.5m shares compared to 201m a month earlier. Foreign investors were net sellers with US$62.47m during the month (CY to date: US$-59.67m). Local banks were also net sellers (US$-18m), while companies, mutual funds and individuals were major net buyers during this period. 35, , , , , , , , , , , Oil & Gas showed mixed performance during the month, with MARI (-12%) and ATRL (-8%) being major laggards while POL (+5%), PSO (+3%), APL (+2%) and PPL (+2%) were positive. OGDC was also down 1% during the month. Banking sector underperformed the index in February, despite some good result announcements. UBL and Bank Alfalah were down 7%; ABL and MCB stock prices dropped 5%; NBP and HBL were down 3% during the month. Cements were also underperformers during the month (DGKC: -6%; LUCK: -2%; CHCC: -14%). Chemicals sector outperformed the index, mainly contributed by the performance of FFC and FFBL, which were up 8% and 5%, respectively. Power sector was an outperformer, driven by 5% increase in Hubco, 17% increase in Nishat Power Limited and 2% increase in Kapco. December quarter results Banks earnings for the quarter increased 31% YoY, reflecting higher returns from their investment portfolios. Oil & Gas sector profits fell considerably during the quarter amidst a sharp fall in international oil prices. Chemicals sector profitability improved 38% YoY largely contributed by Fertilizer companies where offtake increased due to higher gas availability. Power sector profits increase (+151%) was contributed by significantly higher net profit of K-Electric (KEL) during this quarter. Excluding KEL, profits are up 83% YoY. Cement sector profits improved YoY due to better dispatches and improving gross margins on the back of lower fuel and power costs. Overall food sector profits are up 72% because of significant improvement in EFOODS profitability (relative to a huge loss a year earlier). 200% 150% 100% 50% December Quarter PAT growth YoY 0% -50% Banks Oil & Gas Chemicals Electricity Construction Food Producers -100% 1

4 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Money Market Two T-Bill auctions were conducted during the month. Weighted average auction yields during the month have fallen 60bps for 3-months, 62bps for 6 months and 36bps in 12 months. An amount of Rs. 302b was picked up against a target of Rs 200b for the month. A PIB auction was conducted on Feb year, 5-year and 10-year cut-offs were lowered by 39bps, 61bps and 21bps, respectively to 8.50%, 9.14% and 9.80%. Rs b were accepted in the auction against a target of Rs. 50b. Secondary market yields, in February, fell in the range of 10-26bps Secondary Market Yields (%) (PKRV) 27-Feb Jan-15 Outlook CPI clocked in at 3.24% for February, much lower than market expectations. For the eight months of FY2015, average inflation has fallen to 5.47%. With the gap between CPI and Discount rate widening again, expectations of another cut in the discount rate is developing in the market. 14% 12% 10% 8% 6% 4% 2% 0% CPI DR 2

5 Managed Fund Fund Objective To maximize capital appreciation by investing in a balanced portfolio of wide range of shares, Government and other fixed income securities and bank deposits. Fund Information Description Fund Name Information Managed Fund PKR 36,905 Million Launch date ( ) ( ) Category Pricing Mechanism Management fee Pricing days Auditors Appointed Actuary PKR PKR Balanced Fund Back-ward on daily basis 1.50% p.a. Monday to Friday KPMG Nauman Cheema, Nauman Associates, Lahore During the month of February 2015, Managed Fund s (MF) Unit Price increased by PKR 5.63 (0.62%) net of fund management fee. On YTD basis unit price has increased 3.66% (not-annualized) Investment Committee s Ayaz Ahmed Javed Ahmed Sultan Ali Akbar Allana John Joseph Metcalf Nurallah Merchant Manzoor Ahmed Chairman / CEO / Secretary Assets February January Government Securities 71.26% 70.61% Term Finance Certificates 0.80% 0.92% Cash & Short Term Deposits 2.28% 2.70% Stocks & Mutual Funds 25.66% 25.77% Period 1 month 0.62% 3 months 5.70% 12 months 19.17% Calendar YTD 3.66% Since Inception % Since Inception Rate of Return 13.01% February 2015 January 2015 PKR 36,905 Million PKR 36,178 Million GSCs 71.26% Stocks & Mutual Funds 25.66% TFCs 0.80% Cash & Term deposits 2.28% 3

6 Capital Growth Fund Fund Objective The objective of the fund is to maximize returns to policyholders by investing mainly in equity portfolio and partly in Government securities, Term Finance Certificates and bank deposits. Fund Information Description Fund Name Information Capital Growth Fund PKR 1,148 Million Launch date ( ) ( ) Category Pricing Mechanism Management fee Pricing days Auditors Appointed Actuary PKR PKR Equity Fund Back-ward on daily basis 1.50% p.a. Monday to Friday KPMG Nauman Cheema, Nauman Associates, Lahore During the month of February 2015, Capital Growth Fund s (CGF) Unit Price decreased by PKR 2.12 (-0.33%) net of fund management fee. On YTD basis unit price has increased 5.56% (not-annualized) Investment Committee s Ayaz Ahmed Javed Ahmed Sultan Ali Akbar Allana John Joseph Metcalf Nurallah Merchant Manzoor Ahmed Chairman / CEO / Secretary Assets February January Government Securities 20.16% 29.39% Cash & Short Term Deposits 1.93% 1.13% Stocks & Mutual Funds 77.91% 69.48% Period 1 month -0.33% 3 months 6.32% 12 months 37.69% Calendar YTD 5.56% Since Inception % Since Inception Rate of Return 19.24% February 2015 January 2015 PKR 1,148 Million PKR 1,088 Million GSCs 20.16% Cash & Term deposits 1.93% Stocks & Mutual Funds 77.91% 4

7 Meesaq Fund Fund Objective The objective of the Meesaq fund is to provide an opportunity to investors who want interest free returns. The instruments in which the Meesaq fund invests are selective stocks, sukuk, short term deposits in Islamic banks / Islamic bank branches, Islamic mutual funds and other valid interest-free investments. Fund Information Description Fund Name Information Meesaq Fund PKR 5,364 Million Launch date ( ) ( ) Category Pricing Mechanism Management fee Pricing days Auditors Appointed Actuary PKR PKR Non-interest bearing Investment portfolio Back-ward on daily basis 1.50% p.a. Monday to Friday KPMG Nauman Cheema, Nauman Associates, Lahore During the month of February 2015, Meesaq Fund s (MEF) Unit Price increased by PKR 6.40 (0.79%) net of fund management fee. On YTD basis unit price has increased 3.25% (not-annualized) Investment Committee s Ayaz Ahmed Javed Ahmed Sultan Ali Akbar Allana John Joseph Metcalf Nurallah Merchant Manzoor Ahmed Period Chairman / CEO 1 month 0.79% 3 months 4.24% 12 months 14.19% Calendar YTD 3.25% Since Inception 72.59% Since Inception / Secretary Rate of Return 8.20% February 2015 January 2015 PKR 5,364 Million PKR 5,269 Million Assets Government Securities- Sukuk Cash & Short Term Deposits February January % 18.33% 45.11% 46.11% Stocks & Mutual Funds 36.73% 35.56% GSCs 18.16% Stocks & Mutual Funds 36.73% Cash & Term deposits 45.11% 5

8 Yaqeen Growth Fund Fund Objective This fund has been formed to enable Jubilee Life s policyholders to participate in a diversified portfolio of Fixed Income Securities with minimal exposure to equity. Yaqeen Growth fund is suitable for those who wish to earn steady returns on investments through full exposure to debt securities and minimum risk of capital erosion. Fund Information Description Fund Name Information Yaqeen Growth Fund PKR 939 Million Launch date ( ) ( ) Category Pricing Mechanism Management fee Pricing days Auditors Appointed Actuary PKR PKR Capital Protected Fund Back-ward on daily basis 1.50% p.a. Monday to Friday KPMG Nauman Cheema, Nauman Associates, Lahore During the month of February 2014, Yaqeen Growth Fund s (YGF) Unit Price increased by PKR 6.20 (0.73%) net of fund management fee. On YTD basis unit price has increased 16.32% Investment Committee s Ayaz Ahmed Javed Ahmed Sultan Ali Akbar Allana John Joseph Metcalf Nurallah Merchant Manzoor Ahmed Chairman / CEO / Secretary Assets February January Government Securities 88.58% 89.30% Cash & Short Term Deposits 3.98% 3.26% Stocks & Mutual Funds 7.44% 7.44% Period 1 month 0.73% 3 months 4.03% 12 months 15.37% Calendar YTD 2.47% Calendar YTD Rate of Return 16.32% Since Inception 79.26% Since Inception 10.69% February 2015 January 2015 PKR 939 Million PKR 924 Million Stocks & Mutual Funds 7.44% Cash & Term deposits 3.98% GSCs 88.58% 6